An initial evaluation of revenue-sharing arrangements in the new South African fiscal federalism

The neu Constitution of the Republic of South Africa Act 1996 has restructured South Africa as a nonracial federal polity comprised of a national government, nine provincial authorities, and about 700 municipalities. The Constitution specifically created a Financial and Fiscal Commission to organize and manage a new system of intergovernmental grants designed to ameliorate vertical fiscal imbalance and deliver horizontal equity to governments at all levels. This examination of the characteristics and mechanics of South African federalism seeks to classify these new institutional arrangements in terms of the typology developed by Roy Bahl and Johannes Linn and interpret their policy implications.